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Forex Daily News: July 19, 2010 - Dollar Makes a Small Rebound

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar gained against most of the major currencies in Forex Trading as Michigan Consumer Sentiment Index came out 66.5 worse than expected 74.5 and pushed the investors for safety. The CPI came out -0.1% worse than expected 0.1%. US Stock Markets declined sharply with NASDAQ and Dow Jones losing -3.11% and -2.52% respectively. Crude Oil fell by 0.6% closing at 75.75$ a barrel. Gold (XAU) tumbled below the 1200$ level and closed at 1191$ an ounce. No major economic data is expected today.

EURO (EUR) – The Euro reached the 1.3 zone on Friday but pulled back afterwards as stocks tumbled on Wall Street. The Trade Balance data came out -3B worse than the expected 1.4B. The momentum seems to remain positive for the pair as holding above the major support level at 1.2770. Overall, EUR/USD traded with a low of 1.2888 and with a high of 1.3007. Today, the Current Account is expected at -0.3B vs. -5.1B previously.

EUR/USD – Last: 1.2911

Resistance

1.2950

1.3

Support

1.2870

1.2820

1.2770

British Pound (GBP) – The Pound erased previous day's gains and retraced back to 1.53 zones from the fresh 11 week high it reached at 1.547 zones. The momentum seems to remain positive for the pair as holding above the major support level at 1.5180. Overall, GBP/USD traded with a low of 1.5276 and with a high of 1.5462. No economic data is expected today.

GBP/USD - Last: 1.5311

Resistance

1.5380

1.5470

Support

1.5270

1.5180

Japanese Yen (JPY) – Japanese Yen gained against its major rivals and hold its strength across the board, on fears US slowdown could leading to a another recession in the world first economy. The downtrend of the pair might stop if the 85.8 level fails to break and rebound is possible back to 88 zones. Overall, USD/JPY traded with a low of 86.55 and with a high of 87.49. Today, Japanese banks will be closed in observance of Marine Day, it might cause to irregular volatility.

USD/JPY-Last: 86.68

Resistance

87

87.7

88.05

Support

86.3

Canadian Dollar (CAD) – Canada’s dollar weakened versus the greenback after weak US data showed slowing economic recovery and it caused the currencies of countries related on commodity exports less attractive. Breaching the resistance level at 1.0580 might push the pair higher. Overall, USD/CAD traded with a low of 1.0377 and with a high of 1.0577. Today, Foreign Securities Purchases are expected at 8.05B vs. 12.36B previously.

USD/CAD - Last: 1.0542

Resistance

1.0580

Support

1.0520

1.0420